Budget worries easing as keen buyers return

ESTATE agents were on tenterhooks ahead of Rachel Reeves’s November Budget, with talk of changes to stamp duty and a possible mansion tax.

While first homes were unaffected, Reeves did announce increases in landlord income tax, with basic rate rising from 20 per cent to 22 per cent, higher rate from 40 per cent to
42 per cent and additional rate rises from 45 per cent to 47 per cent.

In the event, the mansion tax, officially called the high value council tax surcharge, that was announced will comprise an annual levy on properties valued at
£2 million or more in 2026, and will take effect from April 2028.

Owners of properties valued at between £2 million and £2.5 million will pay £2,500 a year, while those with properties valued at between £2.5 million and £3.5 million will pay £3,500 a year.

Owners of properties valued at between £3.5 million and £5 million will pay £5,000 a year and those with properties valued at £5 million plus will pay £7,500 a year.

While the average price of a UK property in October was £270,000, according to the UK House Price Index, with annual house price inflation at 1.75 per cent, the majority of affected properties will be in London and the South East. Henley is frequently in the top tables for most desirable place to live, while some owners of larger, pricier properties may be thinking of downsizing as a result of the increased costs announced in the Budget.

Matt Mannall, owner of Robinson Sherston estate agency in Bell Street, Henley, said: “The prolonged lead-up to the Budget undoubtedly slowed the market, and by November activity had almost stalled as uncertainty took hold across all sectors — particularly at the upper end, where concerns around a potential ‘mansion tax’ weighed heavily on decision-making.

“Now that the Budget has been announced, and proved less dramatic than many had feared, we’ve seen a welcome bounce in activity across a broad range of price points. In Henley, Watlington and across the region, buyer confidence is beginning to return, with renewed interest from both upsizers and those relocating into the area.

“The market performed strongly for much of 2025, and we sense a real desire among buyers and sellers alike to move forward with their plans. With stable pricing, continued demand for quality homes, and the traditional ‘New Year, new home’ mindset taking hold, we’re optimistic about the months ahead and look forward to getting back to what we do best.”

Marcus Witt, sales manager at Beville Estate Agency in Sonning Common, said: “Looking ahead to 2026, I’m very optimistic about the local housing market. South Oxfordshire continues to show itself as a resilient and insulated area, with strong demand holding steady, even when wider market conditions fluctuate.

“House prices softened towards the back end of 2025, and activity levels slowed down slightly due to the looming Budget. However, buyer enthusiasm is returning, interest rate whispers hint at further possible cuts and properties that are priced accurately and presented well are getting immediate interest.

“After our most successful year ever for the second year running, I’m proud to mark my 10th year at Beville under Richard’s ownership. With Karen’s 30 years of experience in Henley and Joe joining the team, we’re well placed to meet the growing demand and opportunities in our community, and we are preparing for a very active start to 2026.”